The metal trade and United Steelworkers union are urging the incoming Biden administration to keep up the metal tariffs of 25% on most foreign-made metal and quotas that had been imposed in 2018 after hundreds of steelworker layoffs and mill idlings nationwide.
The American Iron and Metal Institute, Metal Producers Affiliation, United Steelworkers union, Committee on Pipe and Tube Imports and American Institute of Metal Building despatched a letter to President-elect Joe Biden saying the tariffs had been nonetheless wanted at a time when the worldwide market was flooded with overcapacity, most importantly from China’s state-run metal trade that accounts for greater than half of the worldwide output and is 10 instances greater than another nation on this planet.
“Continuation of the metal tariffs and quotas is important to making sure the viability of the home metal trade within the face of this large and rising extra metal capability,” they wrote. “Eradicating or weakening of those measures earlier than main metal producing international locations eradicate their overcapacity — and the subsidies and different trade-distorting insurance policies which have fueled the metal disaster — will solely invite a brand new surge in imports with devastating results to home metal producers and their staff.”
Metal overcapacity was projected to develop to 700 million tons final yr, or about eight instances as a lot metal as the USA produced in 2020. China, Vietnam and Turkey proceed to ramp up manufacturing even whereas market demand falls worldwide, whereas Korea, Russia, Ukraine, Indonesia and different international locations proceed to export a lot of the metal they make as an alternative of promoting it to home prospects.